RE:SplurgeI have contructed a few oil and gas energy models in my life time. Please don't be speechless. Oil and gas companies don't include interest expense in FFO in reporting that netbacks. I used to calculate netbacks all the time. But when calculating the payout ratio it is a different. On page 16 they are trying to demonstrate the performance of their countries oil and gas operations from an operational point of view. An analyst might want to understand what is the profitabity of the operations but excuding head office interest charges. If you totla all the countries FFO from page 16 onwatds you will arrive at number that will be something like $260,4 mln. Then go a little further down to Corporate Overview and there you can deduct thhose charges to arrive at $253,573,000.
That is the real FFO. Voila! That is the number they work with to determine their payout ratio and they do it quite correctly imo. FFO is an illusive term. Best thing to do is build a model and workout all the netbacks per boe and tie it into the cashflow statement and then build and oil and gas commodity price outlook and tie those in to determine their cashflow and revenue and expense by line item on a boe basis. Then one starts to appreciate the nuances. Actually there is no "real" FFO... it really depends upon what you are trying analyse wheter it be a shareholder or a production manager determining his bonus payment.
cheers
splurge